• Product Profitability

• Understanding Product Profitability has challenged companies with hundreds of thousands of products or SKUs. Product profitability is further complicated by a complex supply chain or service offering. This may include sourcing, making, delivering, marketing, selling and returning these products.To better understand the indirect costs of their products, these firms have implemented average-based cost allocation, OLAP and rate-based activity based costing, but have found the results to be insufficient to make meaningful decisions, inaccurate, and expensive to maintain.

• Acorn's Solution

• Acorn Systems delivers the most accurate product profitability analysis at the lowest total cost of ownership.
• The Acorn solution accurately drives revenue, direct costs and indirect costs to every individual SKU or product class based on the processes/services performed and the unique characteristics of each product. It provides for accurate profitability analysis of hundreds of thousands of products.
• Acorn does not use averages or rate based allocations that have been the source of inaccuracy and expense with traditional activity based costing.
• Acorn's unique approach has been endorsed by Dr. Robert S. Kaplan, the modern-day father of activity based costing.

• Use Acorn's product profitability solution to:

• • Identify the profitability of every individual SKU or product class and their profit drivers - from the point of
    sourcing to the store shelf or check out
• • Empower managers with drill down information to determine the materials and processes that are driving
     product profits
• • Deliver executive level reporting to understand the profitability of product classes in order to drive
    marketing, sales and SKU rationalization decisions
• • Provide performance metrics by SKU
• • Enable supply chain partners to better understand each partner's performance so that efficiencies
    throughout the supply chain can be optimized.

• Related Resources

• Product Profitability: How to Perfect SKU Rationalization
• Steve Anderson, Founder Acorn Systems
• Better product management is not just about getting the right products to the right customers profitably. It is also about making sure you don’t have what you don’t need. Optimizing your product mix becomes increasingly complex in a world of fast development cycles, short product lives, diverse customer segments, a myriad of channels, and intense global competition. As a first step, your organization needs to understand where it is making money.
• » Read Whitepaper

• Moving from Single Product Profitability to Market Baskets
• Steve Anderson, Founder Acorn Systems
• Taking a holistic view of the performance of a product is more than just looking at its revenue and profitability across the enterprise. In this leading-edge paper we examine how to analyze the profitability of market baskets.
• » Read Whitepaper

• Full Life Cycle SKU Rationalization
• Bill Kadlec, Regional Vice President Acorn Systems
• With SKU Rationalization more important than ever, elimination of unprofitable SKUs and improvement of marginally performing SKUs is just one objective of SKU Rationalization initiatives. This white paper examines SKU rationalization and the channel, capacity, cost to serve, packaging and strategy components involved in optimizing a company's product and SKU portfolio.
• » Read Whitepaper

Acorn Systems Provides: Product Profitability Software, and Product Profitability Solutions

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